NIAGARA FALLS, N.Y. — Niagara Falls residents filled the bleachers at a baseball park, eager to have their say about proposed methods to address the city's budget shortfall. 

In short, they're opposed to the increased fee and want the city to consider other options, including tightening its belt. 

The city’s administrator says the funding lapse threatens the city’s public safety budget, something mayor alluded to earlier this month and for which he blames the Seneca Nation.

On Wednesday, Gov. Cuomo announced the state will provide $12.3 million advance to give the city some relief.

But that financial assistance does not fix the ongoing arbitration process between the city and the Seneca Nation concerning casino revenue.

The city is still considering charging residents a $200 garbage fee as a way to address budget gaps and avoid staff cuts, including to the public safety department.

Cuomo said the city would have to give the money back to the state if an agreement is reached with the Senecas.

Seneca Nation President Todd Gates said Wednesday that the Senecas have completed their obligation to the city, paying more than $1.4 billion to Albany over the 14-year commitment period.

“The state kept 75 percent of that money, sending only 25 percent back to local communities,” he said. “For its own part, the City of Niagara Falls received and spent hundreds of millions of dollars over that time, coming to depend on the revenue as a budget-balancing crutch, rather than a tool to stimulate and revitalize its tax base.”

He suggested that state and local leaders “look in the mirror and wonder about their own failure to plan for what the compact says. If the governor wants to prop up the mayor’s failed financial leadership with the hundreds of millions of dollars in Seneca money which the state received and kept, that is a matter between their governments.”

The financial aid came one day after State Comptroller Thomas DiNapoli identified Niagara Falls as one of three cities in the state showing “significant fiscal stress,” meaning it has serious financial issues that need “prudent long-term planning” in order to solve their problems.   In all, six cities across the state are in stress, in addition to nine towns and 10 counties.

His system evaluates a city’s financial health based on fund balance, cash-on-hand, borrowing practices, fixed costs and patterns of operating deficits.  

Andrew Touma, chair of the Niagara Falls City Council, said the distinction doesn't automatically mean the city will have to start reducing services. 

"Basically, it means we have a deficit in our reserve," he said. "We have a $13 million deficit we're trying to close." 

Any decision to cut services in light of budget gaps would be up to the mayor and city council, he added.

"In order to balance a budget, there are times you have to cut and downisize," Touma said. "But if you do that, you have to make sure you're still providing the proper services to the residents. There's a fine line on those decisions." 

Late last year, the city did vote to cut some police positions, but many of those came through retirements.